stock markets

Stock markets skids, the subsequent panic and the downwards spiral,ready for sentence?

Stock Markets Skids, The Subsequent Panic And The Downwards Spiral, Ready For Sentence?

Miguel Navascués | Perhaps it will not be so serious, but stock markets are falling and trembling. What has happened? Is it the Armageddon expected for over a year? The Federal Reserve is withdrawing liquidity to quickly from the global system, as can be seen in the graph: 50 billion dollars a month in a heavily leveraged global system, too much, with excessive confidence in expectations that “this time it will be different”.

 

 


US corporate debt could be underestimated

Stock Markets Are Not The Same As They Were A Century Ago

Comparing the average PER of a current stock market index with what it was historically is a simplistic approximation and can lead to wrong conclusions. In fact, we should take into account the differences in ROE. In the big stock market indices (S&P 500 in the US, Euro Stoxx 50 in the Eurozone) companies with a greater ROE have been gaining more weight.



No Picture

Putin’s ‘moderate’ speech calm the investors

MADRID | By J. J. Fdez-Figares (LINK) | The main European and American stock markets closed yesterday up in a new session with low activity and reduced volatility, where the investors interpreted the words of the Russian President Putin, in his speech in Crimea, as an attempt to avoid the international isolation of his country as a result of their involvement in Ukraine. Yesterday again the macroeconomic figures published in the Eurozone surprised negatively because to the shrinking economic growth in Germany in the 2Q 2014, the first produced since 1Q 2012 during the euro crisis, the stagnation of the French economy and in the whole of the eurozone during the same period – the German and French economies account for about 50% of the Eurozone.


70% of Stoxx600 firms see profit hikes

MADRID | The Corner | Reporting season in Europe is beginning. Over half the Stoxx600 companies that already showed results surpassed expectations. Profits grew for 70% of this businesses and the average rise was of 9%.  European markets’ upward trend being less mature than American’s may point at a EuroStoxx higher appreciation potential. It gains importance as performance results keep looking up and prices context allows EZ companies to rise EBITDA margin from current 15.2% to prior years levels (above 16%).


No Picture

Do not be scared by these maximum levels!

MADRID | Ofelia Marín-Lozano | Stock markets are at maximum levels, but this is somehow tricky: such levels usually cause vertigo, whereas minimum levels lead to appetence for indebtedness and need to look for higher risk alternatives for investors who seek the actual yield.



No Picture

Investors appetite for Spanish economy: will it last?

MADRID | By David Fernández | Foreign investors are showing a sudden interest in assets made in Spain due to, among others, central bank’s last data, Europe’s decision to delay the deficit commitment by two years and international factors such as second-round monetary helicopter launched by the Bank of Japan. Will this trend vanish?


Financial markets: a shrinking pie

MADRID | By J. M. Campuzano, analyst at Citigroup | During the crisis that began in 2007, capital markets’ weight has been cut to 350% from 450% of the world’s economic outputThe past, in terms of depth and worldwide markets liquidity before the crisis, is long gone and will not come back.